Airbus to upgrade A320 engines

Airbus is to upgrade its A320 planes with new engines it says will provide airlines with 15 percent cuts in their fuel costs.

The France-based planemaker will invest just over a billion euros in the project as it battles to protect its market share from new competitors from Canada, China and Russia.

Airbus’ customers will be able to choose between fitting the new, more fuel-efficient engines or sticking with the existing ones.

As well as cutting fuel costs the new jets, to be known as the A320 NEO, will reduce CO2 emissions and noise. Airbus believes there is a market potential of around 4,000 A320 NEO aircraft over 15 years.

Airbus’ American rival Boeing has shrugged off the development, claiming the Next-Generation 737 it is currently working on is more fuel-efficient than the A320. Beoing says it is studying whether to follow Airbus in upgrading with new engines or opting for an all-new plane.

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